The Corn is Popping

Corn ($ZC_F, $CORN) has been moving sideways and lower for about year since the doubling of prices from June 2011 to March 2012. Looking at it on a shorter timeframe it looks ready to make another run higher.

The chart above shows the strong level of resistance at 666 since October, touching it and falling back 3 times. It reached there again for a fourth time Tuesday with a Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicator that are strong and support a further move higher. It has been creating higher lows along the way, making for an ascending triangle with rising support. A break above the 666 level creates a target of 756, with the 779 high from August just above that. Wait for a break to buy a few ears.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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